Spaghetti with Meatballs

2 onions, chopped
1/4 cup chopped parsley
3 cloves garlic, minced
2/3 cup fresh bread crumbs
1/4 cup fat-free milk
1 egg, lightly beaten
2 tsp. Italian seasoning
1/4 tsp. salt
1/2 lb. estra-lean ground round beef
1/2 pound groundturkey breast
2 tsp. olive oil
2 cans (28 oz. each) tomato sauce
1 can (15 oz.) diced tomatoes
2 Tbs. sugar
2 Tbs. Italian seasoning
12 oz. spaghetti

Coat a Dutch oven with nonstick spray. Warm over medium heat. Add the onions, parsley, and garlic. Cook, stirring often, for 8 to 10 minutes, or until the onions are soft. Add a few tablespoons water, if necessary, to prevent the onions from sticking. Remove 1/4 cup of the onion mixture to a large bowl. Set the remainder aside.
To the bowl, add the bread crumbs, milk, egg, Italian seasoning and salt. Stir to mix. Stir in the beef and turkey. Shape into 12 meatballs, each 2″ in diameter.
Return the Dutch oven to the stove top. Warm the oil over medium-high heat. Add the meatballs. Cook, turning often, for 5 minutes, or until well browned.
To the Dutch oven, add the tomato sauce, diced tomatoes (with juice), sugar, Italian seasoning, and the reserved onion mixture. Bring to a boil over high heat. Reduce the heat to low. Cover and simmer, stirring occasionally, for 20 to 25 minutes, or until the meatballs are cooked through.
Meanwhile, cook the pasta according to package directions. Place in a serving bowl. top with the sauce and meatballs.